Auditing Case

  • Auditing

    here are 10 generally accepted auditing standards and are separated into three categories. 1. General Standards a. Auditor must have adequate training, experience, education and proficiency to perform the audit. b. Auditor must have the attitude of independence c. Auditor must exercise due professional care – with care and skill 2. Standards of Fieldwork d. Auditor must plan properly and supervise employees e. Auditor must understand entity and its environment…including

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  • Auditing

    March 2012 This Auditing and Assurance Bulletin has been prepared by Auditing and Assurance staff. It has not been issued under the authority of the Auditing and Assurance Standards Board (AASB). This Auditing and Assurance Bulletin is intended to help raise practitioners’ awareness in a timely manner of significant new or emerging issues or other noteworthy circumstances related to engagements addressed by the AASB pronouncements. It is also meant to direct practitioners to relevant requirements

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  • Auditing

    recommendation regarding client acceptance The accounting firm of Barnes and Fischer, LLP, is a medium-sized, national US-based CPA firm. The partnership, formed in 1954, now has more than 6,000 professionals on the payroll. The firm mainly provides auditing and tax services, but it has recently had success in building the information-systems-consulting side of the business. It is mid-January 2005, and you are a newly promoted audit manager in an office of Barnes and Fischer, located in the Pacific

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  • Ac503 Advanced Auditing Unit 2 Case Study

    Unit 2: Case Study - The North Face, Inc. Julia Harmon AC503 – Advanced Auditing Unit 2: Case Study – The North Face, Inc. Should Auditors insist that their clients accept all proposed audit adjustments, even those that have an “immaterial” effect on the given financial statements? Defend your answers. The auditor would not be able to insist that their client accept all proposed audit adjustments. The auditor must advise management, the Board of Directors and the audit committee of all proposed

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  • Auditing Case

    GETEM Reference Cases and Input Organization The GETEM Model Reference Cases The GETEM Model Input Variables Geothermal Technology Improvement Opportunities Risk Cases Considered Geothermal Expert Team Scoring Matrices Suggested Scoring Process for the Expert Team MYPP Cases Scoring Changes Made to Experts Inputs 1 4 5 5 5 7 8 9 9 9 11 11 11 13 19 19 27 27 28 iii Summary of Results Case-Specific Results Hydrothermal Binary 2010 Experts Case Hydrothermal Flash 2010 Experts Case EGS Binary 2010

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  • Auditing

    IT Audit Seminar organized by National Audit Office, China 1 to 4 September 2004 Paper on “Formulation of IT Auditing Standards” By -- Ms.Puja S Mandol and Ms. Monika Verma Supreme Audit Institution of India Introduction The use of computers and computer based information systems have pervaded deep and wide in every modern day organization. An organization must exercise control over these computer based information systems because the cost of errors and irregularities that may

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  • Auditing

    Auditor’s Responsibility for Assessing Going Concern In auditing, going concern is identified as an entity’s capability to continue operating as a business entity. It is the auditor’s responsibility to evaluate the company’s financial statements to assess whether or not the going concern assumption is appropriate. An entity is obligated to include a disclosure in the footnotes of the financial statement stating if there is substantial doubt of the company to continue as a going concern.

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  • Auditing Cases

    understanding of the role of confidence, reputation, and trust both in the corporate and auditing professions. [4] [5] [6] To provide a venue for exploring professional issues relating to auditor independence and the provision of non-audit services for clients. To introduce students to the current debate on rules- versus principles-based accounting standards and related implications for the auditing profession. To actively involve students in considering the challenges facing the accounting

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  • Auditing

    Auditing Cases An Interactive Learning Approach FIFTH M F S D E D ITIO N S. B A. B M. G F. P Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Donna Battista Acquisitions Editor: Stephanie Wall Editorial Project Manager: Christina Rumbaugh Senior Managing Editor: Cynthia Zonneveld Production Project Manager:

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  • Auditing Case

    Smackey Dog Foods, Inc. started in the kitchen of Sarah, Kim, and Jillian’s family home in the suburbs of Chicago. The three sisters initially bought the ingredients for their natural dog food recipes from the local grocery store. They used their dogs and the neighborhood dogs as their taste testers. Their dog food products were so good, the local kennels and veterinary offices were glad to distribute the sisters' products to their customers. Local demand increased significantly. Local pet

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  • Auditing

    performing his or her profession. Also auditors must compile by the code of ethics, as being auditors they serve the public on their own responsibility requires a set of rules and regulations to discipline their profession. As promulgated by auditors, auditing must adopt code of ethics which states the principles and expectations governing the behavior of individuals and organization in conducting audit. Moreover the auditors are expected to display code of ethics which will provide guide for all audit

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  • Auditing

    errors and irregularities. In this case misstatement of inventory identified would be considered significantly enough to require substantive testing of inventory. In this case inventory is not entering proper time and missing the records. So auditor has to do substantive test of inventory. c. Substantive testing procedures that evaluate the accuracy, completeness and existence of amounts stated in general ledger accounts and financial statements. In this case substantive testing should performed

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  • Auditing

    disclosures Expression of opinion on financial statements *Test* Table 5.1 Definitions And broad broad stuff Can accept a gift from a client as long as its no more than “token” or the amount the firm gives you You can indirectly own stock in an auditing client if its immaterial to your net worth You cannot be paid in stock Because we don’t see the audit as one event, its not a series of events even though that looks like it. Because once you have the client you usually have it for a good amount

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  • Mr. Friehling – a Future Auditing Case Study

    David Friehling will quite possibly be a future case study in auditing textbooks and courses throughout the United States. Mr. Friehling was the auditor for Bernard Madoff, who was recently convicted of running the largest Ponzi scheme ever uncovered through his business, Bernard L. Madoff Investment Securities, LLC (BMIS). Mr. Madoff claimed to actively oversee more than $65 billion in private investments (it was later revealed that roughly $823 million remained of the more than $170 billion that

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  • Auditing

    reflects the possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex

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  • Auditing

    Department of Law, Economics, Accountancy and Risk AUDITOR INDEPENDENCE Introduction The concept of independence is strongly associated with professionally standard auditing (Olagunju, 2011, pp.85). In other to maintain the utmost standard for the accounting profession, independence is seen as being free from control or pressure and not allowing situations which would tend to weaken objectivity or create personal preconceived notions (Porter and Simon et al., 1996). Audit improves the trustworthiness

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  • Auditing Cases

    Auditing Cases instructor resource Manual f our th e d itio n Mark S. Beasley Frank A. Buckless Steven M. Glover Douglas F. Prawitt do not coPy or redistribute Prentice hall Upper Saddle River, New Jersey ta b l e s e ct ion o f co n t e n t s 1 2 client acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . S o l u tionS inc lu de d in t h iS Section 1.1 Ocean Manufacturing, Inc. 3 The New Client Acceptance Decision s e ct ion Understanding

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  • Auditing

    generally accepted auditing standards (GAAS). Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards. Auditing procedures are acts that the auditor performs during the course of an audit to comply with auditing standards. Auditing Standards 2. The general, field work, and reporting standards (the 10 standards) approved and adopted by the membership of the AICPA, as amended by the AICPA Auditing Standards Board

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  • Auditing Corruption Case

    Corruption Case The case study “Why is this Furniture Falling Apart?” is about Art Metal U.S.A., a furniture manufacture, that had put out “$200 millions of worth of defective and useless that the General Services Administration (GSA) bought.” (Wells, 2011, p. 237) Federal agencies and GSA customers put in several complaints but nothing was done to investigate. After many years of complaints and suspicion of a corruption scheme there were articles written that instigated a congressional investigation

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  • Advanced Auditing Final Review Case Note

    Final Exam Review Practice Case IPI Case: Required: 1. Identify Accounting System Issues * System implementation * Lack of training * I: people try to override the system, inaccurate reporting * R: The company who installed the system needs to be contacted and hold training session for employees * Glitches * I: inaccurate reporting, create room for error * R: Contact the company again and get them back and give them responsibility

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  • Auditing

    statements are in material conformity with accounting standards. Auditing standards: Establish mandatory (强制) requirements and provide explanatory (解释) guidance to auditors in fulfilling their professional responsibilities in the audit of financial reports. Auditing: Is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be performed by a competent, independent person. Compliance

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  • Auditing

    MIT765801 AUDITING Individual Assignment HIH Insurance Report Student Name: Jinyun Wang Student ID: MIT122634 Lecturer Name: Susan Currie Tutor Name: Susan Currie Due Date: 29 / 1 / 2014 Submitted date: 7/ 2/ 2014 by email Executive Summary The auditing profession plays a significant role in industrialized economies for many years. In the insurance industry, the manner of auditing profession is regulated. The collapse of Health International Holdings (HIH) was recorded as the biggest

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  • Auditing

    The Likeside Company: Auditing Cases AUDITING PROCEDURES AND AUDITING DOCUMENTATION: TESTING THE INVENTORY PURCHASING SYSTEM Art Heyman is employed as a staff auditor with the independent accounting firm of Abernethy and Chapman. For the first two weeks of December 2012, Heyman is asined to the Lakeside Company examination. During this period, he is to perform a number of testing procedures designed by Carole Mitchell, in-charge auditor on the engagement. Heyman recalled that several parts

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  • Auditing

    Comprehensive Case United States Surgical Corporation 1 Running head: COMPREHENSIVE CASE U.S. SURGICAL CORPORATION Comprehensive Case United States Surgical Corporation Scott P. McHone Liberty University Comprehensive Case United States Surgical Corporation 2 Abstract During the past thirty years we have seen an increase in the number of companies that have committed some form of financial shenanigans. Some of these companies have manipulated Generally Accepted Accounting Principles to present

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  • Auditing

    FIFTEENTH EDITION AUDITING AND ASSURANCE SERVICES AN INTEGRATED APPROACH Includes coverage of international standards and global auditing issues, in addition to coverage of the AICPA Clarity Project, PCAOB Auditing Standards, the Sarbanes–Oxley Act, and Section 404 audits. A LV I N A . A R E N S Former PricewaterhouseCoopers Emeritus Professor Michigan State University R ANDAL J. ELDER Syracuse University Professor and Senior Associate Dean MARK S. BEASLEY North Carolina State University

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  • Auditing

    authority, to set standards. That power still belongs to the SEC, and they can be denied if the SEC does not agree with them. After the SEC approves the standard they are placed into effect, making them valid so to speak. They are then a legal auditing standard that must be followed by all publicly traded companies. For the private sector, it began with the Committee on Accounting Procedure (CAP), which was a committee of the American Institute of Accountants (AIA); later renamed the American

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  • Auditing

    Running head: AUDITING Auditing Joey Willoughby OMM622 Financial Decision Making Instructor: Wayne Hollman August 11, 2014 Auditing This inquiry will exemplify what the staff should anticipate auditors to do

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  • Auditing

    because a company may not be objective with respect to its own financial statements. 4) Itisacustomarycourtesythatallstockholdersofacompanyreceiveanindependent report on management’s stewardship of the affairs of the business. B. Independent auditing can best be described as 5) A branch of accounting. 6) Adisciplinethatatteststotheresultsofaccountingandotherfunctionaloperations and data. 7) A professional activity that measures and communicates financial and business data

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  • Case 3 Auditing

    Prefab Sprout Construction Company You have been approached about auditing Prefab Sprout Construction Company, a family-run general contracting company which is publicly traded on the New York Stock Exchange. The president of Prefab is Jack Warner. His wife, Joan, is the vice president and his son, John, is the treasurer. The Warner family owns about 40 percent of all outstanding shares and no other investor owns more than 1 percent. The company has been previously audited (receiving standard

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  • Case #1 - Advanced Auditing

    the quarterly statement of his privately-held company. Those quarterly statements are for the bank that his company has the line of credit, those statements have to look good so that the bank approve their credit. There are two big problems in the case. The first one is the as he started on the company he had to sign the closing of the prior fiscal year. If the fraud was being made in the last year, he could be treated like an accessory to the fraud because he signs the statements. The other problem

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  • Auditing Case

    course we have discussed some of the factors that will help the auditor evaluate inherent risk and with that the amount of sufficient and appropriate evidence needed to be collected. Below are a couple more of the more relevant ones to the Comptronix’s Case. The first factor to consider is the industry of the client’s business operations. When conducting an audit the auditor should understand the company and how day to day operations are run. Also they should understand the direct risk associated with

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  • Auditing

    ISA ISA 500 March 2009 International Standard on Auditing Audit Evidence 500 INTERNATIONAL STANDARD ON AUDITING 500 Audit Evidence Explanatory Foreword The Council of the Malaysian Institute of Accountants has approved this standard in March 2009 for publication. This standard should be read in conjunction with the Preface to Malaysian Approved Standards on Auditing; Preface to International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services; Glossary

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  • Auditing

    reflects the possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex

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  • Auditing Case 12.4

    have a friendly personal relationship with a client? It is appropriate for the auditor to have a friendly personal relationship with the client so long as it does not interrupt the level of professionalism of the business relationship. In this case; however, Mark was reserve about telling George about the going concern explanatory paragraph that Mark want to put in the audit report. This situation was awkward because Mark and George were friends. In the end, Mark had decided to tell George about

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  • Auditing

    of Economics and Management Sciences International Islamic University Malaysia PO Box, 10, 50728, Kuala Lumpur, Malaysia E-mail: Abstract Independence is the primary justification of the existence, and thus the hallmark of the auditing profession. It is recognized as the primary attribute to be maintained by auditors in all circumstances. This study attempts to explore the determinants of auditor independence as perceived by Malaysian accountants using a self-administered mail

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  • Auditing

    are: • To enable the auditor to obtain sufficient competent evidence for the circumstances. This is essential for minimizing legal liability and maintaining a good profession reputation. • To help keep audit costs reasonable. Given the competitive auditing environment, keeping costs reasonable helps the firm obtain and retain clients. • To avoid misunderstandings with the client. This is important for good client relations. 6) وهناك ثلاثة أسباب رئيسية لماذا مراجعا للحسابات بشكل صحيح يجب أن خطة

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  • Auditing

    OVERVIEW OF AUDITING I. Review Questions 1. One definition of auditing is that it is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users. The Philippine Standards on Auditing (PSA) 120 “Framework of Philippine Standards on Auditing” states the

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  • Auditing

    professional service based on up-to-date developments in auditing practice and relevant legislation. f) Technical Standards: Audit should be performed by following certain standards, international or national. International Standards on Auditing (ISAs) The auditor should follow basic principles and essential procedures together with related guidance as contained in ISAs. International Standards on Auditing (ISAs) are issued by the International Auditing Practices Committee (IAPC). The IAPC is a standing

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  • Auditing and Assurance Case 1.2

    Auditing & assurance Case 1.2 1. Consider the principles, assumptions and constraints of Generally Accepted Accounting Principles. Define the revenue recognition principle and explain why it is important to users of financial statements. According to the revenue recognition principle, revenues are recognized when they are realized or realizable, and are earned. Thus, it does not matter when the cash is received. To break that definition down, revenues are realized when products are exchanged for

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  • Auditing Case

    Keith Parkinson 2/3/15 Auditing Case 1: Merry-Go-Round Merry-Go-Round (MGR) is a clothing retailer that was founded in 1968. The company’s locations were in malls that targeted the youth and teen market. In the late 1980s, the company was listed by Forbes magazine as one of the top 25 companies. By the early 1990s, sales fell due to stiff competition from other retailers. Facing bankruptcy, the company hired turnaround specialists from Ernst and Young (E&Y) to help overcome the financial

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  • Auditing

    created the need for a specialist in various business controls: the internal auditor. We can understand better the nature of internal auditing today if we know something about the changing conditions in the past and the different needs these changes created. What is the earliest form of internal auditing and how did it come into existence? How has internal auditing responded to changing needs? As the operations of an organisation become more voluminous and complex, it is no longer practicable

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  • Auditing

    possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. Auditing has no effect on either the risk-free interest rate or business risk. However, auditing can significantly reduce information risk. 1-4 The four primary causes of information risk are remoteness of information, biases and motives of the provider, voluminous data, and the existence of complex

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  • Auditing

    Assignment 2 AU2 Advanced External Auditing Question 2 a) Three specific business strategies that explain eBay’s decision to offer good for sale at fixed prices: 1. Expand into New Markets: With the shrinking market of auction bidders on eBay and a growing market of fixed price buyers, customers may not prefer to go in the direction of purchasing goods in an online auction. Since, in an online auction the customer has to wait till the end of the auction to see which buyer

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  • Auditing

    Contemporary Auditing 304 Q.1: Would you find it helpful to have the cases presented in the order you cover them? Do you have assignments or your own materials you would like to integrate into your casebook? Ans:- Yes it will be helpful as case studies are a great way to tell the world how valuable your products or services are. They go beyond simple testimonials by showing real-life examples of how you were able to satisfy your customer’s needs and help them accomplish their goals. With great case studies

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  • Auditing: Case Study

    energy-conservation measures that are appropriate for the facility. This is done through walk-through audit (Smith & Parmenter, 2016). Performing financial analysis based on estimated cost implementation, the cost of operations and other features are done. Auditing the energy use survey to give a detailed examination of the facility and how the energy is being used. This can involve measurements on site and soft wares to examine energy substitutes. Finally, the evaluation of the building's operating system

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  • Milianaw University Internal Auditing Case

    used cars from the university motor pool as personal vehicles; and also misused his authority with regard to the purchase of insurance policies. In response to these complaints, the president requested that Keith Tiller, the director of internal auditing, conduct a review of the Harris Hall purchasing procedures and university purchasing policies. During the course of the review, the president expanded its scope to include the award of university insurance contracts. It was Carter's charge to analyze

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  • Auditing

    Audit procedure generally means the procedure used by auditors for evaluating financial information by exploring the relationship between financial and non-financial data ( 2016). In the given case scenario, audit evidence has been collected and it has been concluded by the auditor that there is a low risk of misstatement with respect to three elements – - Wages and Salaries - Electricity, and - Repairs and Maintenance We will be describing a suitable audit procedure for

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  • Auditing

    AUDITING THEORY TESTBANKS / REVIEWERS 1. When an auditor believes that an understanding with the client has not been established, he or she should ordinarily a. Perform the audit with increase professional skepticism. b. Decline to accept or perform the audit. c. Assess control risk at the maximum level and perform a primarily substantive audit. d. Modify the scope of the audit to reflect an increased risk of material misstatement due to fraud. 2. An auditor should design the written

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  • Auditing

    AUDITING DEFINITION Auditing can be defined as an independent examination of the books of accounts and vouchers of a business with a view of forming an opinion as to whether these have been kept properly according to the Companies Act and as to whether the statement drawn there from portrays a true and fair view of the company’s state of affairs at a given date. The above definition can be broken down as follows: i. Independent examination: this is conducted by a qualified accountant qualified

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  • Auditing Case Study

    AUDITING CASE STUDY ACCT: 407-01 3/31/2010 The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Audits are performed to ascertain the validity[->0] and reliability[->1] of information; also to provide an assessment of a system's internal control[->2]. The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis. Due

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